Leveraging WMS to Enhance Your ERP Solution

Software applications like warehouse management systems (WMS) and enterprise resource planning (ERP) systems are used in businesses across a variety of industries to manage, streamline, and automate operations. But choosing which system is best for your company can be a challenging task.

If you are in the market for software to optimize business functions, it’s essential to understand the key differences and similarities between WMS and ERP systems so you can choose a solution that fits your needs.

Enterprise Resource Planning (ERP) Systems

An ERP system is a type of business management software that includes a suite of integrated solutions to help businesses automate processes, streamline the flow of information, and manage operations across various departments, including accounting, purchasing, inventory management, warehouse management, customer relationship management, eCommerce, and more. Companies use ERP systems to facilitate the real-time flow of information between departments and create a single platform where multiple departments can use and view dashboards, reports, and data.

With an ERP system in place, organizations benefit from a consistent, efficient, and streamlined platform to manage all critical back-office business functions.

While most solutions do offer some warehouse capabilities for a company who may have a small warehouse, it’s not purpose built to optimize multiple warehouses or to the level of details to optimize the inventory.

Warehouse Management Systems (WMS)

Another type of business management software, WMS, is designed to manage and optimize a business’s inventory. These solutions track the movement and storage of each inventory item, manage daily planning and organizing tasks, provide guidance on how to optimize inventory movement within a warehouse based on both real-time and historical data, and generate reports and dashboards that help ensure operations are carried out efficiently.

WMS systems are ideal for complex operations that require advanced inventory and supply chain optimization.

WMS vs. ERP: Key Similarities & Differences

Both WMS and ERP systems help businesses manage resources and supply chains efficiently and cost effectively, use real-time data to generate reports and insights, and are available as cloud-based or on-premises systems. However, there are significant differences between these systems in terms of functionality, purpose, and the level of specialization offered.

By knowing the differences between WMS and ERP systems, you will be better prepared to choose a solution that meets the requirements of your operation.

Functionality

An important difference between these systems is functionality. While a WMS is a standalone solution that focuses solely on warehouse management, activities, and operations, an ERP system is an all-in-one solution that optimizes processes and streamlines the flow of information among nearly all areas of an organization.

Purpose

ERP systems have a broad scope. They have a range of applications and features that offer functionality and automate processes across an entire organization. While ERP systems often include some warehouse and manufacturing functions, warehouse operations are not their primary focus.

Alternatively, WMS solutions are specifically intended to meet the unique needs of the warehouse environment. They lack the accounting, eCommerce, customer relationship management, and other features that ERP systems typically have. However, since they are niche systems, they tend to be much more detailed, specialized, and targeted than ERP systems.

Level of Specialization

Since ERP systems are intended for organization-wide operations, they are not as flexible or specialized as other software solutions; instead, they are designed to meet a wide range of needs across business departments. In other words, unlike a WMS, an ERP is not specifically curated to one area of the business.

WMS solutions, on the other hand, are extremely specialized to the warehouse environment and offer advanced levels of specialization, adaptability, flexibility, and customization. Their narrow scope allows developers to create detailed, rich features that are centered on inventory management and warehouse operations.

Which Solution Is Right for Your Business?

Deciding whether a WMS or ERP system is the best option for your business can be daunting, and the answer to which solution is right for your business depends on the needs of your business, including your long-term goals, existing processes and systems, and functionality requirements.

ERP systems usually have built-in warehouse management abilities, but WMS’s provide a much more robust set of warehouse and inventory management solutions. Companies looking for specific warehouse functionalities may require a WMS to meet their needs, while organizations searching for an all-in-one business operations management tool alongside warehouse and inventory management solutions may prefer to invest in an ERP system.

An ideal solution for many businesses—especially larger businesses with many moving parts as well as complex warehouse management and inventory operations needs—is to implement both a WMS and an ERP system. These solutions can work together, and companies that benefit from an ERP system can then also take advantage of the additional features of a WMS.

Whether you choose to implement an ERP system, implement a WMS, or invest in both types of systems, it’s vital to talk to a trustworthy, established software vendor and get help creating an effective solution for your business.

Streamline Business Operations & Inventory Management with CAI WMS & ERP Systems

At CAI, we create innovative, production-oriented software to help our customers across a variety of industries streamline business processes and optimize their manufacturing, processing, or distribution operations. Our goal is to provide you with industry-leading solutions that improve your business functions, all with excellent service and support.

Whether you are looking to automate production, increase your return on investment, reduce costs, or streamline operations, we can help. With our suite of tools and access to our expert team, optimizing your business processes is easier than ever.

Contact us today for a free consultation.